Ather Energy sees 40% EV penetration in domestic two-wheeler market by FY31

Share via: Ather Energy is expecting the electric scooters to spearhead the electrification of the Indian two-wheeler market. Ather Energy is expecting the electric scooters to spearhead the electrification of the Indian two-wheeler market. View Personalised Offers on Check Offers Ather Energy, one of the leading electric two-wheeler manufacturers in India, is expecting a 40 per cent penetration of electric vehicles in the domestic two-wheeler market by FY31. The OEM is optimistic that the electric two-wheeler penetration could rise to about 40 per cent by the end of this decade, when the overall Indian two-wheeler industry will touch about 3.1 crore units annually, growing at an eight per cent CAGR. Ather Energy, in its annual report for 2024-25, said that this growth will be driven by an increased number of launches in the segment, strong government support, and rapid development of supportive infrastructure and a faster consumer shift towards electric mobility. The company said that the rapidly expanding Indian electric vehicle market, propelled by legacy players increasing their EV portfolios and new entrants expanding capacity, is accelerating growth. The entry of established brands into the EV market is expected to provide significant momentum to the growth story. The expansion of distribution in the electric two-wheeler market is also expected to fuel the sector’s growth. Ather projects EV two-wheelers to growth at 41% CAGRIn its annual report, Ather Energy has said that the overall two-wheeler sales in India are projected to grow at seven per cent CAGR, reaching 29-30 million units by FY31. It also stated that the electric two-wheeler market is expected to grow at a 41 per cent CAGR, while the internal combustion engine (ICE) market will see a moderate growth of two per cent CAGR. By FY31, electric two-wheelers are anticipated to account for 35 per cent of overall two-wheeler sales in the country. The company also stated that in an optimistic scenario, driven by increased EV launches, strong government support, rapid infrastructure development, reduced battery prices, and a faster consumer shift toward electrification, industry sales could grow at eight per cent CAGR, reaching 30-31 million units by FY31. In this scenario, the company said that EV penetration may rise to 40 per cent, compared to the 35 per cent projected in the base case. EV penetration in scooters touch 16 per cent in FY25Ather Energy said electric vehicle penetration in scooters touched 16 per cent in FY25. The company said that India has established itself as one of the largest motorised two-wheeler markets in the world by volume, with domestic sales reaching 20 million units in FY25. It further said that the company anticipates this growth to continue, and scooters to power this growth. By FY31, Ather estimates 70-75 per cent of scooters to be electric, and the brand claims to be well-positioned to capitalise on this growth. In FY25, the company said EV penetration in two-wheelers reached 5.8 per cent, up from 5.1 per cent in FY24. Scooters continued to lead electrification with approximately 15.7 per cent of scooters in FY25 being electric. It also added that scooters are expected to lead the electrification in two-wheelers. Electric two-wheeler penetration in scooters is expected to be as high as 70 per cent in FY31, and in motorcycles, it is projected to be 10 per cent by FY31. Check out Upcoming EV Bikes in India. First Published Date: 31 Aug 2025, 14:50 pm IST
Source: hindustantimes.com